> If anybody asks questions (“Where did all those Tethers come from? Prove to me they’re collateralized”), sell some of your inflated Bitcoins for real US Dollars at a profit, stick those dollars in your bank account, and then say "Look! Here they are! Just like we promised."

This makes no sense. The money has to come from somewhere. Sure it can be fake money in Tether $$ but once you cashed out somewhere (in cash or your bank account) then the money should be real.

Tether market cap right now is $4bn. The proclaimed value created/destroyed is $450bn. The market cap of all crypto at the beginning of 2017 is $18.3bn and the market cap right now is $246bn. The difference is massive (around $220bn).

Now let's look at the market depth, because this is something everyone likes to claim: The order books are thin. This is far from being true. Looking at Gdax, the market bids to a 10% discount is around $12m. From my experience, trading crypto markets, it'll take around three times that much dollars to take the price to these levels. Many things kick off: 1. Hidden buy orders and 2. Bots arbing with other exchanges and 3. Fast bid makers who use neither visible or hidden bids.

That's around $35m that you can dump on a single exchange for a 10% discount. That doesn't take into account: 1. You can use multiple exchanges 2. You can use private sales or OTC and 3. If you are selling $100m of crypto (or even stocks), you'll probably do it over the course of a few days unless you think the instant discount is less than the stretched one.

If Tether created a $300bn market from a $4bn of cash, then that's genius, no? But wait, that's not what the author saying. The OP is saying that these $4bn don't even exist. Then Bitfinex/Tether created a $300bn market out of nothing. Uhh, no. I'm having a hard time believing that.

tl;dr: Dude goes on a lengthy non-sense rant and has no real proof backing his facts.